Washington, D.C.—Mortgage applications decreased 2.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 6, 2012. This week’s results include an adjustment for the Fourth of July holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 22 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index decreased 17 percent compared with the previous week and was 3 percent lower than the same week one year ago.

The refinance share of mortgage activity decreased to 77.0 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity remained around 4 percent of total applications.

The average loan size of all loans for home purchase in the US was $240,897 in June, down from $243,733 in May 2012. The average loan size for a refinance was $218,619, down from $226,576 in May. The largest purchase loans were made in the Pacific region at $ 361,788. The largest refinance loans were also made in the Pacific region at $ 310,977.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.79 percent, the lowest rate in the history of the survey, from 3.86 percent,with points decreasing to 0.36 from 0.41 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.05 percent, the lowest rate in the history of the survey, from 4.08 percent,with points decreasing to 0.34 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.63 percent, the lowest rate in the history of the survey, from 3.69 percent,with points decreasing to 0.36 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.15 percent, the lowest rate in the history of the survey, from 3.20 percent, with points decreasing to 0.43 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.71 percent, the lowest rate in the history of the survey, from 2.76 percent,with points decreasing to 0.36 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.